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Uber Business Model Innovation Explained

Discover how to innovate your business by applying the 55 business model patterns developed by leading scholars of the University of St. Gallen

Check out how Uber innovated its industry, looking at the "Peer to Peer", the "Experience Selling" and the "Revenue Sharing" patterns from the St. Gallen Business Model Navigator.

For more information, visit us at www.bmi-lab.ch

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Uber Business Model Innovation Explained

  1. 1. www.bmilab.com Nest: Build your connected home Discover Nest through the eyes of the 55 Business Model Patterns Based on the St Gallen Business Model Navigator
  2. 2. www.bmilab.com Did you know that 90% of the most successful companies are based on only 55 Business Model Patterns? That means that innovation is mostly built on the recombination of already existing ideas. Want to learn more about the patterns and the process? Check out this Slideshare
  3. 3. www.bmilab.com Look at how Nest Innovated its Industry
  4. 4. www.bmilab.com First, see how the business model of traditional thermostat providers work Who is their customer  Private households and businesses who seek for heating and climate control. What are they selling  Manual or programmable thermostats and set of components for heating systems and radiators. How do they produce their offering  High quality, technical excellence, broad range of experience and expertise. Why is their business profitable  Producing and selling high quality products
  5. 5. www.bmilab.com But nowadays competition takes place between business models and not just between products and technologies
  6. 6. www.bmilab.com Now, Meet Nest, the Company That Works in a Business Ecosystem! WHO is their customer  Private households and businesses who seek for smart home solutions.  Energy provider and governments who focus on increasing productivity and decreasing costs.
  7. 7. www.bmilab.com WHAT are they selling  Nest Learning Thermostat, Nest Protect smoke & carbon monoxide alarm and Nest Cam, connected with and controllable from the users’ smart devices anywhere and anytime.
  8. 8. www.bmilab.com HOW do they produce their offering  Creating an ecosystem by collaborating with energy providers and governments.  Giving energy providers access to control households’ cooling system.  Linking customers and energy providers.
  9. 9. www.bmilab.com WHY is your business profitable  Add-on and subscription-based pricing model.  Compatibility between products.  Incentives for customers with saving plans.
  10. 10. www.bmilab.com But HOW did Nest innovate?
  11. 11. www.bmilab.com #1 Add-on HOW NEST DOES IT: Besides Nest Thermostat, the customer can purchase additional Nest products, which can be monitored and controlled with the same application. When purchasing a Nest Cam you can buy an extra service for recoding video data.
  12. 12. www.bmilab.com #24 Leverage customer data HOW NEST DOES IT: Nest gives energy providers access to customer data if the customer participates in the energy saving program. Moreover, energy providers can control Nest thermostats and regulate temperature in order to prevent shutdowns. In return the customer will safe energy costs and receives price reduction on Nest products.
  13. 13. www.bmilab.com #32 Open business model HOW NEST DOES IT: Nest creates an ecosystem, in which it collaborates with energy providers and governments in order to maximize customers’ value and to extend their business areas.
  14. 14. www.bmilab.com #47 Solution Provider HOW NEST DOES IT: With Nest you can build your connected home. It provides a full range of products and services to design an entire smart home infrastructure.
  15. 15. www.bmilab.com Use the Patterns for Your business! Buy the BMI Pattern Cards @ Amazon and visit www.bmilab.com to discover more about Business Model Innovation!
  16. 16. www.bmilab.com WHERE DOES IT ALL COME FROM? Of course, there was a lot of research behind the pattern cards The result of it is this book to the right: The Business Model Navigator! by Oliver Gassmann, Karolin Frankenberger & Michaela Csik